Time passes quickly, and before you know it, your child has gone from taking their first steps or saying their first words to starting school. You’ll want to do all you can to set them up for a successful future, but it can be challenging to know where to begin. 

You might need to prepare financially to meet private school fees, provide help with university accommodation or living costs, or simply give your child a financial safety net as they begin adult life.

Whatever your goals, building a dedicated nest egg could help you support those you love most without slowing progress towards your own long-term objectives.

This guide explores:

• The education costs you may need to plan for
• Why starting early could make your goals more manageable
• How cash savings and investments could support various time frames
• How grandparents could help fund education costs
• Why planning for education costs should fit into your wider financial plan.

Download your copy here: Back to school: How to build a nest egg to fund your children’s education

Building a nest egg for your child’s education could give your loved ones more choice and confidence when important costs arise. 

If you’d like to understand how planning for education might fit into your wider financial plan, please get in touch to find out how we could help.

Gifting assets during your lifetime has become a common strategy for reducing a potential Inheritance Tax (IHT) bill. Indeed, according to Paragon Bank (31 July 2025), 1 in 5 savers aged over 65 are passing on cash for this reason.

Yet, gifting doesn’t always mean that assets are excluded from your estate when calculating IHT, and there are a lot of misconceptions about when the tax could be applied.

Inheritance Tax may apply to your estate after you pass away

To understand if your gifts might be liable for IHT, you also need to be aware of how IHT works and when estates are liable.

IHT is a tax that’s applied to your estate after you pass away if the total value exceeds certain thresholds. The standard rate of IHT is 40%, so it could significantly reduce how much you leave behind for your loved ones.

Your estate includes your assets, such as property, savings, and investments. From April 2027, most pensions will be included in the value of your estate when assessing if IHT is due, so you might need to re-evaluate your estate’s liability with this reform in mind.

In 2026/27, there are two main IHT allowances:

• The nil-rate band, which is £325,000. If the value of your estate falls below this threshold, no IHT will be due.
• The residence nil-rate band, which is £175,000. You may use this allowance if you leave your main home to direct descendants. It will taper by £1 for every £2 that your estate’s value exceeds £2 million.

You can pass on unused allowances to your spouse or civil partner. As a result, you may be able to pass on up to £1 million before IHT is due if you’re planning as a couple.

Importantly, IHT is applied to the portion of your estate that exceeds the IHT thresholds.

So, if your estate could use both the nil-rate band and the residence nil-rate band, and was valued at £600,000, IHT would be due on the £100,000 that exceeds the thresholds. This would result in an IHT bill of £40,000.

Why gifting may not be a simple way to reduce your estate’s Inheritance Tax bill

If your estate could be liable for IHT, passing on your assets during your lifetime might seem like the obvious solution, but there are some complexities you need to be aware of.

First, keep in mind that your circumstances could change and gifts might not be recoverable if you need the assets in the future. It’s important to review gifts in the context of your wider financial plan to assess the impact they could have on your long-term financial security.

Second, not all gifts are immediately outside of your estate for IHT purposes. The following allowances may provide a way to pass on assets free of IHT:

• The annual exemption means you can give away up to £3,000 each tax year without the value being added to your estate. You can gift this sum to one person or split it between several people. You can carry forward unused annual exemptions for one tax year.
• You can also make small gifts of up to £250 per person each tax year, as long as you have not used another allowance on the same person.
• If you’re celebrating a wedding or civil partnership, you can take the opportunity to pass on £1,000 tax-efficiently. This allowance rises to £2,500 if it’s your grandchild or great-grandchild getting married, and to £5,000 for your children.
• Regular payments made to another person may be free from IHT. These gifts must be made from your regular income after meeting your usual living costs. They must also be given regularly. You might use this allowance to pay rent for your child, cover school fees, or add to a savings account on behalf of your grandchild. It’s important to keep an accurate record if you’re planning to use this allowance, as HMRC may look for an established pattern of giving.

Gifts that do not fall within these allowances will normally be considered potentially exempt transfers (PETs).

Inheritance Tax and potentially exempt transfers

PETs are gifts that might be considered part of your estate and could be liable for IHT.

If you live for seven years after passing on a PET, it will then fall outside of your estate for IHT purposes. So, gifting assets earlier in your life could make sense, but this should be balanced with assessing how it might affect your long-term finances, including if your needs change.

If you pass away within seven years of gifting a PET, IHT may be applied. The taper relief means the rate of IHT you pay on gifts falls as time passes. In 2026/27, the taper relief is:

Years between gift and death	Rate of tax on the gift
Three to four years	32%
Four to five years	24%
Five to six years	16%
Six to seven years	8%
Seven years or more	0%

You should note that the taper relief only applies if the total value of gifts made in the seven years before you pass away exceeds the nil-rate band. As a result, if no tax is payable because the transfer does not exceed the nil-rate band, no relief can apply.

So, when assessing the potential IHT liability of gifts, you may also need to consider the wider value of your estate.

Get in touch

If you’d like to discuss your estate plan, including how you might pass on assets to your loved ones tax-efficiently, please contact us. There may be other strategies, alongside gifting, that could reduce your estate’s IHT bill.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate Inheritance Tax planning or estate planning.

Key changes are being made to ISAs in April 2027, and they could affect how you use the tax-efficient wrapper.

You might have read in the news or heard that the ISA allowance is being cut or that tax will now apply to cash savings. While there is some truth in these statements, without further details they’re misleading. To cut through the sometimes confusing headlines, we explain the two changes you should be aware of.

ISAs are a popular and tax-efficient way to save and invest

An ISA provides a tax-efficient way for people in the UK to save and invest. Typically, the interest or investment returns you earn from money held in an ISA won’t be liable for tax.

ISAs are popular, with about 15 million adult accounts subscribed to in 2023/24, according to HMRC (18 September 2025). During the year, approximately £103 billion was added to adult ISAs. So, they’re likely to form part of your overall financial plan, and it’s important to be aware of the changes coming into effect in April 2027.

1. The Cash ISA limit will reduce to £12,000 for under-65s

In 2026/27, you can place up to £20,000 into an adult ISA, and you may spread this across Cash and Stocks and Shares ISAs however you like.

In April 2027, the overall ISA allowance will remain at £20,000. However, the amount you can place in a Cash ISA will be limited to £12,000. You will then be able to place the remaining £8,000 of your allowance into a Stocks and Shares ISA.

There is no additional cap on the Stocks and Shares ISA. You may invest the full £20,000 allowance if it’s right for you.

As a result, if you currently place more than £12,000 into Cash ISAs each tax year, you might need to adjust your financial plan.

As well as the regulatory change, you might want to consider if investing could be appropriate for you. Cash provides security, but the value of your money will fall in real terms if the interest paid doesn’t keep up with inflation.

In contrast, investing through a Stocks and Shares ISA could offer a way to grow your assets at a quicker pace than inflation. However, investment returns cannot be guaranteed, and you could get back less than you initially invested. Due to market volatility and risk, investing often isn’t appropriate if you’re working towards short-term goals.

This new ISA rule doesn’t apply if you’re over 65. In this case, you may continue to place your entire allowance into a Cash ISA if you choose. The exception allows over-65s to rely on the stability of cash rather than potentially volatile investments, as some people adopt more risk-averse financial strategies later in life.

2. Interest earned on assets held in non-cash ISAs will be subject to 22% tax

If you hold cash in a non-cash ISA, such as a Stocks and Shares ISA, interest earned on that cash will be taxed at 22% from April 2027. This tax will apply to over-65s.

Crucially, cash held in a Cash ISA will not be subject to this tax.

As a result, it may be worth assessing what assets you currently hold in your ISAs and whether cash assets could be transferred to a Cash ISA.

Considering which assets – cash or stocks and shares – suit your needs is important when placing money in an ISA. When you’re deciding how to use your ISA allowance, answering these questions could help you decide what type of account might be right for you:

• What financial goal are you working towards?
• When do you intend to access the money?
• What level of risk is appropriate for you?
• What other assets do you hold?

Generally, if you’re saving for long-term goals (those that are at least five years away), investing may be appropriate. All investments carry risk, but this varies among different opportunities. If you decide to invest, you should assess what level of risk is appropriate for you, which a financial planner can help you with.

Contact us

If you want to understand how to make the most of your ISA allowance or how to save or invest tax-efficiently once you’ve maxed out your ISA, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate tax planning.

Have you ever made an investment mistake? Looking back at what led to the mistake could help you identify potential triggers that might prevent you from repeating the error.

When you first think about why an investment decision was “bad”, the lower-than-expected investment returns may be what comes to mind. As you contemplate what led to your decision, you might link it to a lack of information or factors outside your control.

While these may have played a role, there are often psychological reasons behind your choices. Investment decisions are often influenced by emotions or biases, which could lead to investors acting irrationally.

Here are four psychological reasons why investors make mistakes.

1. Emotions could cloud your judgement

Investment decisions should be based on data, such as risk profiles or expected investment returns. Yet, this is rarely the case, as emotions are often involved. Even experienced investors can be affected by their emotions at times.

Consider periods of market downturns. Seeing the value of your assets fall could spark fear that might lead to hasty decisions, such as withdrawing your money because you’re worried that values will drop further.

The emotions that affect your investment decisions aren’t caused only by market movements or your finances. Perhaps work has been stressful, so you seek certainty and reduce your investment risk. Alternatively, a sense of security in your life could lead you to feel more comfortable taking investment risk.

2. Overconfidence may tempt you to try to time the market

Everyone would like to purchase assets at a low price and sell when the value peaks. The problem is that markets are often unpredictable, and the values of assets are prone to experience peaks and troughs that are impossible to consistently time.

Rather than achieving the highest returns possible, trying to time the market could mean you miss out on long-term growth opportunities. As a result, it often makes sense for investors to invest in a wide range of assets that align with their risk profile and hold them over the long term.

Feeling overly confident in your ability to time the market could lead you to take greater risk and disregarding your investment strategy.

3. Confirmation bias could lead you to overlook information

When you’re deciding how to invest your money, you might research different options. One of the challenges here is overcoming confirmation bias – the tendency to seek out or focus on details that support your existing beliefs.

For example, if you’ve subconsciously decided an investment decision is right for you, you may overlook information that suggests otherwise or that the valuation is likely to fall.

4. Following the crowd may feel safer

Being part of a crowd can feel safer. Making the same investments that your friends do or that you’ve read about in the newspaper can feel comforting.

Yet, large numbers of investors have been negatively affected by poor decisions. For example, in the late 1990s, the dotcom bubble developed as investors were eager to own a portion of internet companies on the expectation that their values would soar. During the crash that followed, many online businesses collapsed and investors lost money, some because they had followed the crowd.

What’s more, an investment decision can be right for one individual but wrong for another. Perhaps your colleague whose investment strategy you’re tempted to copy has different investment goals, financial circumstances, or risk profile than you. Blindly following the investment decisions of others could lead to decisions you later regret.

There are ways to limit the impact of emotions and bias

You can’t remove emotions and bias from your investment process entirely; they’re part of being human. However, there are steps you might take to reduce their impact.

Taking a break before making large financial decisions could allow strong emotions to settle. You might benefit from having clear goals you can refer back to. In addition, a financial planner could provide you with a different perspective and guidance. If you’d like to talk to us about your investments, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Organising your finances and planning your future are important tasks. Yet, it’s something that many people put off. Procrastination isn’t simply a lack of discipline. It’s often linked to stress, fear of failure, and other psychological factors, and working with a financial planner could help overcome these obstacles.

Even if you have a financial plan in place, you might delay steps you need to take to keep everything on track. You might skip updating your goals as they change or put off reviewing the performance of your investments, even though you know it’s something you should tackle.

Here are six reasons why it’s easy to delay financial tasks and how a financial planner could help you have the confidence to manage your finances now.

1. The present may take priority

A key challenge when creating a long-term plan is that you need to balance it with your short-term needs. One reason you might delay considering future goals is that you’re focused on tasks that have an immediate impact on your life.

This short-term perspective could mean you don’t engage with long-term goals, such as retirement, for years, causing you to miss out on potential opportunities to secure the future you want.

It can sometimes feel like you have to choose whether you want to enjoy life now or secure your future. A financial plan could help you assess how you might strike the right balance for you.

2. Large goals can feel daunting

Large, long-term goals may feel impossible to reach, so you might not want to think about them.

Retirement is a good example of this. If you want to retire in your 60s, you’ll often need to save enough to generate a pension income that will cover your needs for several decades.

Legal & General research (16 December 2025) found that the happiest retirees have an average total monthly income of £1,700. If you’re eligible for the full State Pension, the data suggests you’d need a pension of approximately £172,500 to bridge the gap.

That figure can feel daunting when you first start contributing to a pension, so much so that you avoid reviewing it.

Working with a financial planner could help you break large goals into smaller ones so they feel manageable. They could also highlight other factors that could support your efforts. For example, once you factor in employer contributions, tax relief, and potential investment returns, the amount you need to contribute to your pension may feel more achievable.

3. Too many financial decisions might feel overwhelming

Day-to-day, you’ll need to make financial decisions, from what groceries to buy to whether you should switch energy providers to get a better deal. It might mean you have decision fatigue, so you leave the long-term decisions for another day.

A financial planner could make the decision-making process easier. They’ll work to understand your needs, goals, and challenges, so they’re able to offer tailored advice. Knowing there’s someone you can trust to answer your questions also removes the hours you might spend researching areas like tax allowances or investment risk.

4. Talking about finances may feel taboo

Making financial decisions might involve speaking to others. You may need to discuss household budgets or what’s important to you in retirement with your partner. For some, this can be uncomfortable.

Indeed, according to Barclays (2 April 2026), 50% of people say money feels like a taboo subject and 29% avoid conversations about finances even if it would help their situation.

Working with a financial planner on an ongoing basis could be useful here. It provides a designated time and space to talk about your finances and the impact your decisions could have on your life.

5. A fear of judgement

Everyone has made a financial decision they regret at some point. Whether you relied too much on credit when you were younger or invested in an asset that later lost money, these experiences and the fear of judgement could mean you delay engaging with your finances now.

A survey of UK adults noted in Money Marketing (16 June 2026) that people who often avoid discussing money do so because they’re concerned about being judged or that it will be perceived as a sign of failure.

A financial planner is there to help you understand how to use your assets to achieve your long-term goals, establish positive money habits, and support you, not judge you for how you’ve handled your finances previously.

6. The “I’ll do it later” mindset

Will it make a difference if you review your pension today or tomorrow? The answer is probably not, but this mindset of delaying tasks could mean things you’ve meant to get around to aren’t addressed for months or even years.

Working with a financial planner means you’ll have regular meetings scheduled, and they’ll contact you if a review needs to be carried out sooner. It might mean you’re less likely to skip important financial tasks.

Contact us

To arrange a meeting to discuss how we could help you review your finances and goals, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Most people are confident they could spot a scam if they were targeted. However, it could be more difficult than you think, especially as fraudsters are increasingly using sophisticated techniques to mislead victims.

According to a survey from Which? (7 April 2025), 9 in 10 people believe they could identify a scam email or text. Yet, it only takes a single oversight to become a victim. 1 in 7 people say they’re sent scam emails a few times a week, so it’s easy to see how you could overlook a red flag you’d usually recognise.

The consequences of falling victim to a scam could be devastating.

An article from the BBC (15 June 2026) notes that scammers stole almost £1.3 billion in 2025, with nearly eight cases of fraud reported, on average, every minute.

It’s not just the financial loss that affects victims. Scams may also cause emotional damage, with some of those affected reporting feeling shame or guilt. Victims may also find it difficult to manage their finances or make financial decisions.

Being aware of scams and how fraudsters might dupe you is one way to protect yourself. Over the next few months, read our blog to find out more about the different types of scams and the steps you could take to reduce your vulnerability to them. Now, read on to discover some of the psychological tricks that fraudsters might use.

7 ways a scammer may try to trick you

Financial scams are increasingly sophisticated, and fraudsters use several tactics to encourage you to transfer money or share sensitive data. Here are seven of the tricks they could deploy.

1. Creating a sense of urgency

If you believe you’re in a situation where you need to make quick decisions, scammers know you’re less likely to ask questions or fully assess your options. So, they might create a sense of urgency, such as claiming your bank account will be frozen if you don’t act or there’s only a limited time to invest in a lucrative opportunity.

2. Using your trust in authority

If you’re told by HMRC you owe money or by the police that there’s a problem with your bank account, you might be more likely to trust the message because of the organisation you believe it’s coming from.

Fraudsters may use this trust by impersonating a person in an authoritative position. This might take the form of a phone call, or an email that’s designed to look like it’s come from a particular organisation. Fraudsters can even use number spoofing to make it seem as though the call is coming from the correct number if you check it.

3. Playing on your desire to help others

Many people would offer to help someone who is in need, particularly if they are a family member or friend.

Knowing this, scammers have been known to impersonate loved ones in a bid to gain access to your finances. Alternatively, they might pose as a charity or other organisation you’d like to support.

4. Manipulating your emotions

Emotions affect the decisions people make. For example, when you’re fearful or excited, you might act more rashly than you usually would. Scammers may use this knowledge to manipulate their victims.

5. Building a rapport over time

We often think of scam attempts as a single message that pops up in your inbox or a one-off call. However, some scammers use strategies that last for weeks or months to build up a rapport and gain the trust of their victims.

This is often the case in romance scams, where the victim may believe they’re in a genuine relationship. Investment scams might extend over weeks. For example, you might make an initial investment that appears to deliver returns, which encourages you to hand over larger sums.

6. Exploiting a lack of financial knowledge

Many people aren’t confident discussing or managing finances, which provides fraudsters with an opportunity. They might use complicated language or misrepresent rules to give the impression that they’re experts who can be trusted.

For instance, they might claim there’s a loophole that allows you to access your pension early, enabling you to retire sooner. Someone who is not fully aware of how and when their pension may be accessed could fall for this.

7. Persistently contacting victims

One trick that fraudsters use is to cast their net wide. While you might usually be savvy and able to easily spot a scam, if you’re tired, stressed, or your attention is simply elsewhere, you may not spot the usual warning signs.

We could help you identify scams

If you receive communications that you’re unsure about or you want our support in assessing opportunities, we’re here to help you. Seeking the view of another person could highlight signs of a scam you might have overlooked.

Next month, read our blog to find out more about the different types of scams that fraudsters could use to target you and the red flags you should be aware of.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.